Yes so this is a confusing ICO. It was recommended to my by a friend to look into but perhaps someone here could help explain it better or maybe in writing it down I will better understand it and it's actual value. Either way I am going to do so here so if I have understood this wrong please correct me.
As of this writing EOS seems to be trading at about $1.30 USD on crypto market cap. ETH is $172.
Per the token website their distribution is taking place over a year by selling 2,000,000 coins/day at more or less "market price" and how they determine that is by dividing the total EOS available for the period by the total amount of ETH collected. Then they multiply that number by the amount of ETH you contributed - thats how much EOS you get.
YOUR EOS = a*(b/c)
a = Total ETH contributed by an authorized purchaser during the period.
b = Total number of EOS Tokens available for distribution in the period.
c = Total ETH contributed by all authorized purchasers during the period.
This is their example:
20 EOS Tokens are available during a period.
Bob contributes 4 ETH and Alice contributes 1 ETH during the period.
As a total of 5 ETH were contributed for 20 EOS Tokens during the period, 1 EOS
Token will be distributed for every 0.25 ETH contributed. Therefore, Bob receives
16 EOS Tokens and Alice receives 4 EOS Tokens.
OK GREAT. So now I am writing this and wanting to do some real work number examples of this... In all examples I'll use an investment of 5 ETH and since the distribution is 2,000,000 coins every day for the next year I'll keep that solid too so the only real variable is how much ETH others invest each day - as of this writing they are only 3 hours into todays distribution period but it currently sits at 958 ETH so I'll use that in the first example.
5 ETH contribution = "A"
2,000,000 coins available/period = "B"
958 Total ETH contributed = "C"
So in this distribution I would get roughly 10,438 EOS - 2,087/ETH = $.0824 each
Example 2 - more ETH contributed - 5000 ETH
5 ETH contribution = "A"
2,000,000 coins available/period = "B"
5000 Total ETH contributed = "C"
In example 2 I get 2,000 EOS - 400/ETH = $.43 each
Example 3 - you get lucky because it is a holiday and everyone is asleep - only 50 ETH contributed during period.
5 ETH contribution = "A"
2,000,000 coins available/period = "B"
50 Total ETH contributed = "C"
Example 3 I get 200,000 EOS - 40,000/ETH = $.0043 each.
So what I take from this is that you want to be in on a day when no-one else is buying or else you end up getting a lot less coins. I am also seeing that in order to maintain the current pricing of $1.30 USD they need to have people buy in at a rate of almost 17,500 ETH per day or roughly $3 Million USD/day
Does anyone know how much ETH was collected in the initial few days of this launching? How does the value go up otherwise?
I guess I still just don't get this one - can someone smart help?